At a recent three-day conference held in Abuja, members of the National Conference of the Association of Professional Women Engineers of Nigeria (APWEN) joined other professionals to highlight how the federal government’s new Energy Transition Plan would be beneficial to all particularly women. JUSTINA ASISHANA reports

The energy transition is the significant structural change in the energy sector regarding consumption that seeks to replace fossil fuels with low carbon energy sources, which include oil, natural gas and coal and renewable energy sources like wind and solar as well as lithium-ion batteries.

The Nigeria Energy Transition plan of the federal government seeks to achieve net zero emissions by 2060, while solving energy poverty and lifting 100 million Nigerians out of poverty by 2030. The Nigeria Energy Transition plan focuses on five critical energy sectors, which include power, cooking, oil and gas, transport and industry and is estimated to cost $1.9 trillion. The Nigeria Energy Transition plan aspires to provide universal access to electricity and transition to cleaner energy sources, thereby providing electricity to almost 90 million people without power and aims to generate 340,000 work opportunities by 2030 and 840,000 by 2060.

Discussions around energy transition including the Nigeria Energy Transition Plan took the front burner at the recently concluded National Conference of the Association of Professional Women Engineers of Nigeria (APWEN) held in Abuja. Several of the speakers and presenters during the conference harped on how energy transition would be beneficial to all particularly women. Speaking on the theme of the APWEN National Conference, ‘Just Energy Transition: An Enabler for Sustainable Development in Nigeria,’ Minister of Science, Technology and Innovation, Dr Adeleke Mamora, said that the federal government Energy Transition Plan would create massive jobs and opportunities for women, as he urged the women to take advantage of the strategy.

He noted that the energy transition plan of the federal government would not be one that would be copied from other nations, but one that would reflect on the reality of the Nigerian situation and landscape. He said, “For the energy transition plan, Nigeria intends to look at the reality of the situation on the ground and work on its own strategy. Nigeria Energy Transition Plan would apply the reality of our own situation and chart a course that will not be detrimental to us as a people and as a nation.”

The Minister disclosed that the Ministry of Science, Technology and Innovation would partner with APWEN to achieve the energy transition plan of the federal government especially as the plan would present a unique opportunity for women to be at the forefront of the decision and development of carbon energy sources. “We are ready to partner with APWEN to achieve the energy transition plan of the federal government. We also encourage all stakeholders to take advantage of the policies of the government for the robust use of energy transition to drive sustainable development in Nigeria. The energy transition cannot take place without science, technology and innovation. Government cannot do it alone and that is why the partnership with the private sector needs to be involved.”

He described the theme of the conference as apt and timely expressing optimism that the discussions during the conference would create a framework for just energy transition and would serve as a catalyst to the reinvigoration of technological development and sustainability in the country

There is a universal acceptance of the need to transition by reducing energy-related CO2 emissions to limit climate change. However, there is also a need to recognise that while aggressive energy transition programmes are being pursued in developed countries, many developing countries, especially those with hydrocarbon-dependent economies like Nigeria, require a more gradual and flexible approach to the energy transition mantra. The Group Executive Director, Upstream NNPC, Engineer Adokiye Tombomieye, noted that while aggressive energy transition programmes are being pursued in developed countries, many developing countries, especially those with hydrocarbon-dependent economies like Nigeria would need to prepare for the transition. He stated that energy transition is real, and Nigeria must prepare for it pointing out that Nigeria needs a gradual and flexible approach to this change for developing countries

Tombomieye said that energy transition comes with several financial opportunities as investors will go for an opportunity to invest in the oil and gas sector as the industry prepares for energy transition, stressing that it is imperative to continue to develop substantial gas resources even as the nation advances towards the adoption of renewable energy sources. “Banks and investors will go for an opportunity to invest in the oil and gas sector as the industry prepares for energy transition. The good news is that financial institutions will fund gas projects. Therefore, leveraging upon gas development will be a way for Nigeria to navigate the energy transition mantra. Energy transition also comes with the opportunities of carbon credits and because Nigeria produced gas and oil, we can market our carbon which will also be an incentive for us to process funding from financial institutions.”

The NNPC Group Director noted that natural gas remains a very important transition fuel for sustainable development and since  Nigeria has a healthy balance of gas and oil, it is imperative to continue to develop the substantial gas resources while also advancing the adoption of renewable energy sources, to advance and succeed with its energy transition strategy. “The acceleration of natural gas utilisation and implementation of our energy sector reform will not only help in reviving oil and gas production but will serve as a catalyst to foster gas-to-power, industrial development, and expansion of the gas network to Gas Based Industries. Before the window closes on fossil fuel, Nigeria must utilise its huge oil and gas resources to boost our economy and promote sustainable growth and social development for the present and future generations. The renewable energy sector still has many unexplored potentials and securing the appropriate funds, partnerships, and technology will accelerate large investments in the nation and put it in line with the global decarbonisation movement.”

He commended the leadership of APWEN for organising the conference and choosing to talk about energy transition, saying that more discourse needs to be done to enable individuals, organisations and government to know exactly what energy transition is all about. Tombomieye urged the association to continue its advocacy for women in engineering sciences, pointing out that women’s education is a catalyst for national development, “The education of the girl-child through mentorship campaigns, organisation of professional development programmes like this conference, and motivation of female students to pursue engineering and sciences programmes is also an enabler for sustainable development in Nigeria.”

The guest speaker, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engineer Simbi Wabote, announced that the NCDMB had provided a $40 million gas intervention fund for women and women businesses in the energy, oil and gas sectors urging women to key into opportunities in the energy transition. “We have a mirage of gas processes, gas development, marketing project and infrastructural development project all over the country. Aside, from $500 million already subscribed in the oil and gas, we pulled out the $40 million to encourage women in the energy transition. We have identified solar energy as an integral part of the energy transition, and we are supporting President Muhammadu Buhari’s administration to ensure the transition to zero carbon emulsion by 2060 is achieved.”

Wabiote, who was represented by the Manager NCDMB, Silas Ajimijaye, disclosed that the board is partnering other government agencies to ensure the delivery of the decades of gas programme. The National President, Association of Professional Women Engineers of Nigeria (APWEN), Engineer Elizabeth Eterigho, noted that a just energy transition is a transition towards a sustainable, low carbon and equitable energy system that is aimed at improving the lives of people and sustaining the environment. She noted that the theme for the conference is apt because the transition of the energy sector will require significant investments and there is a need for the people to be sensitized to this strategy.

Eterigho expressed the willingness of the association to partner government at all levels to ensure the effective take-off of the energy transition plan, stressing the need for energy sources to be diversified in domestic, commercial, and industrial sectors while new available technologies to reduce energy wastages and save cost need to be adopted. “In Nigeria, the power sector has been in comatose for many years, coupled with the frequent collapse of our national grid. The transition of the energy sector will require significant investments. As we all know, traditional fossil fuel-exporting countries are seeking how to leverage the change in demand patterns brought about by the energy transition and as a momentum to decarbonise their economies and Nigeria should not be left behind.”

The conference, which had in attendance over 200 female engineers from government and private sectors and 200 young female engineers and collegiate, started with an awareness walk and press briefing after which the opening ceremony and panel discussions were held on day two. Technical sessions were held on day three where 18 research papers on various aspects of harnessing energy were presented and on day four, the conference was rounded off with the association’s annual general meeting (AGM) and a dinner award night.

 

 

With the drafting of post Petroleum Industry Act (PIA) regulations, including the Frontier Exploration Fund and the Host Community Development Fund, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is expected to steer the industry to the path of growth and increased value addition. Series of engagements with stakeholders, particularly the upstream players, will see more successful search for oil and gas in the frontier basins of Nigeria and improved spending on host communities, writes AMBROSE NNAJI

Search for new oil wells and funding support for host communities are two critical components of the Petroleum Industry Act (PIA), now under implementation. At the centre of these goals is the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which is already holding consultations on how to effectively sustain growth of the Nigerian oil and gas industry as well as support the host communities.

The NUPRC has already commenced the second phase of consultations on the much-talked-about Frontier Exploration Fund (FEF) as well as regulations on decommissioning and abandonment of assets by oil and gas operators. Whereas there was no concrete framework on both industry issues before now, the Petroleum Industry Act (PIA) now provides for strong rules on how oil companies would henceforth decommission or abandon their facilities without causing harm to the environment.

The Frontier Exploration Fund (FEF) will, under the guidance of NUPRC, be deployed annually to fund search for oil and gas in the frontier basins of Nigeria under the PIA regulations. It will be mainly extracted from 30 per cent of the Nigerian National Petroleum Company (NNPCL) profit from oil and gas, while three per cent of operating expenditure approved under the Act, would be spent on the Host Communities Trust Fund (HCTF).

Speaking during the new round of consultations, the NUPRC Chief Executive, Gbenga Komolafe, disclosed that progress had also been made on the phase one of the exercise, leading to the gazetting of the host communities’ fund. The fund is expected to provide the much-needed relief for oil producing areas of the Niger Delta who have been subjected to years of neglect by the oil companies and the government. Other draft regulations to be considered include: Acreage Management (Drilling and Production); Regulations and Upstream Petroleum Environmental Regulations as well as the Upstream Petroleum Environmental Remediation Fund Regulations. Also up for discussion during the three-day event are the Upstream Petroleum Safety Regulations and the Unitisation Regulations.

Represented by the Executive Commissioner, Health, Safety, Environment and Community, NUPRC, Capt. John Tonlagha, Komolafe stated that the consultation was in furtherance of the initial rules reviewed in April. The NUPRC chief executive recalled that six draft regulations were presented for discussion in April during the first phase of its consultations with stakeholders. According to Komolafe, the stakeholders’ inputs from the engagement were incorporated, where necessary, in the draft regulations which were forwarded to the Attorney General of the Federation and Minister of Justice for vetting, legislative standardisation and approval.

While one of the regulations, the Host Communities’ Trust Fund regulation had been gazetted, Komolafe stated that the remaining five had been finalised and ready to be gazetted. “Our commitment to create an enabling environment for growth and investments in the upstream oil and gas industry in Nigeria has steered our focus towards working with all stakeholders. This can be seen in our efforts to ensure that regulations and key policies necessitated by the PIA are developed and gazetted timely so that the industry operators can align their operations with the PIA provisions as quickly as possible,” he stated.

Komolafe reiterated that the process of formulating the regulations had been rigorous being products of critical evaluation and hard work by the commission’s regulatory development team and the presidential implementation committee on PIA. “Please permit me to reiterate that the process of formulating the above regulations has been a rigorous and strenuous exercise. They are products of critical thinking and evaluation, and hard work by the commission’s regulation development team and the Presidential Implementation Committee on PIA.

“Despite this, however, the process is not complete until the stakeholders’ critical inputs are obtained, discussed, and incorporated, where necessary, in the regulations. To this end, I am of the firm view that with the level of turnout today, we will have healthy, robust, and intellectual discussion on the regulations during the syndicate sessions to come out with robust regulations with best international best standard.

“In conclusion, this phase in our regulations development is by no means a final or exhaustive one in our drive to support the upstream industry operators. The commission will continue to embark on programmes and policies that will create enabling environment for growth and more investments in the Nigerian upstream oil and gas sector,” he assured.

Speaking earlier, the Commission’s Head of Compliance and Enforcement, Dr Joseph Tolorunse, said that the forum served as an avenue to listen to stakeholders’ views on the regulations and secure their buy-in, which would determine PIA’s implementation. He maintained that it had been confirmed empirically that if stakeholders were part of the regulations making process, compliance would be achieved easily. “With this procedure of rule-making, it is believed that consensus will be built, trust between the regulator and the regulated entities will improve and ultimately the regulations will be easier to implement and sustained,” he stated.

Also in attendance were stakeholders from the oil and gas industry, officials from the World Bank, indigenous and International Oil Companies (IOCs), among others. Analysts said the PIA gives host communities some percentage of the oil revenue.

 

Frontier Exploration Fund/ Host Communities Development Fund

Lagos-based oil and gas expert, Stevens Michael, explained that the Frontier Exploration Fund was created under the Petroleum Industry Act to be managed by the NURPC for the purpose of exploring possible frontier oil basins not yet discovered in Nigeria. He disclosed that Section 9(4) of the PIA provides that the FEF will be made up of 30 per cent of NNPC Limited’s profit oil and profit gas – profits from its oil and gas exploration transactions

According to Michael, the Host Communities Development Fund is a category of fund created under the Petroleum Industry Act to be managed by each Host Communities Development Trust set up by settlors (companies with mining and prospecting licenses on a project) for the purpose of contributing economic and social benefits to host communities where oil & gas is being explored.

Section 240(2) of the PIA provides that each settlor shall make an annual contribution of three per cent of its actual operating expenditure (OPEX) into the HCDT Fund. “This means that where an oil company is exploring oil resources through an OML or OPL in the upstream sector, such a company will have to contribute three per cent of its OPEX to Host Communities,” he said.

Michael said the interface of NUPRC in the oil and gas industry and passage of PIA will promote the creation of job opportunities both directly and through petroleum and gas-based industries, plus other industries that are ancillary to them. It will also boost youth employment within the host communities. “It will attract more foreign capital inflows and boost market-driven competition. This would mean a capacity for firms both local and foreign that are domiciled in Nigeria to take care of all the segments of the value chain at the upstream, midstream and downstream sub-sectors of the industries,” he said.

The NUPRC recently announced the unveiling of the Template and Procedure Guide for the Host Communities’ Development Trust (HCDT) for commencement     of implementation of the provisions of Section 235 of the Petroleum Industry Act (PIA) 2021. The unveiling of the template on host communities fund administration was a major development for oil-producing areas of the Niger Delta who are expected to benefit from the three per cent operating expenses of oil companies in the area. Section 235 of the PIA provides for the incorporation of Host Communities Development Trust by the Settlors, that is, the oil and gas companies, for the benefit of their hosts. It places the responsibility to set up the HCDT and appoint the Board of Trustees (BoT) on the companies in consultation with the host communities. In addition, Section 247 of the Act requires the BoT to set up a management committee to handle the general administration of the fund.

The HCDT provided by the PIA proposes to advance the development of the host communities within the scope of funds available to the BoTs for such purposes. It is also envisaged that sabotage of oil and gas infrastructure will be reduced since local communities now have a slice of the pie. Since the regulations, which were officially unveiled by the government, are now ready, the managers of the fund should be announced anytime soon. Analysts applauded Komolafe for leading NURPC at this critical time, and having the courage to see the marginal oilfields award completed seamlessly.

 

Petroleum Industry Act

 

Prior to the enactment of the Petroleum Industry Act (PIA) 2021, the fields were classified as marginal when they were not considered by licence holders for immediate development due to assumed marginal economics under prevailing conditions or left unattended for more than 10 years. They also included assets that leaseholders considered for farm-out due to portfolio rationalisation or those, which the president may, from time to time, identify as such.

Komolafe noted that the engagement with the marginal field awardees and leaseholders was for NUPRC to state the policy position on the 2020 Marginal Fields Bid Round (MFBR). He stated that this would enable successful awardees progress to field development phase in line with the PIA. He stated that the marginal field initiative was conceived to entrench the indigenisation policy of the government in the upstream sector of the oil and gas industry.

According to him, the objective is to promote indigenous participation, increase oil and gas reserves, as well as production, encourage capital inflow, generate employment, and build local capacity in the sector. Komolafe noted that relevant leaseholders had also been invited to the forum so that they could understand their roles and responsibilities as it affects the farm-out of the fields, which he said included facilitating the achievement of first oil in a collaborative manner.

In all, he reiterated that 57 fields were identified for the 2020 bid round exercise, and a total of 665 entities expressed interest, explaining that after extensive evaluation processes as laid down in the guidelines, 161 entities emerged as potential awardees.

Komolafe explained that signature bonuses for 119 awards were fully paid, nine awards were partly paid for, and 33 awards had yet to be paid for; a situation he said had resulted in various challenges inhibiting the close-out of the exercise. The 2020 oil bid rounds conducted by the NUPRC were awarded in June this year. Komolafe disclosed that in the process of getting to conclude the bid rounds, about N200 billion was raked in from the 57 oil fields to the coffers of the federal government, plus an additional $7 million in signature bonuses and others.

 

 

The Director General of the World Health Organisation (WHO), Dr. Tedros Ghebreyesus, has said two-third of the world have been vaccinated against the COVID-19 pandemic, including 75 per cent of health workers and older people.

Noting that the number of recent weekly reported deaths is almost the lowest recorded since the pandemic began, the WHO chief, however, urged countries to increase vaccination coverage and ramp up surveillance and testing, in order to end the pandemic.

In Nigeria, as at September 25, over 38 million Nigerians have been fully vaccinated against COVID-19, representing 35 per cent of the total eligible population target for vaccination. Also, over 12 million Nigerians are currently partially vaccinated, according to the National Primary Health Care Development Agency (NPHCDA).

Speaking during the COVID-19 Global Action Plan Ministerial Meeting, Dr. Ghebreyesus said: “We have never been in a better position to end COVID-19 as a global health emergency. The number of weekly reported deaths is near the lowest since the pandemic began, and two-third of the world is vaccinated, including 75 per cent of health workers and older people.

“But there is much more to be done. Huge disparities in vaccination coverage, implementing rate of testing and sequencing, and gaps in access to antivirals put us all at risk.

“We have the tools to bring the acute phase of this pandemic to an end, but only if we vaccinate all health workers and older people, keep testing and expand access to effective antivirals.

“At the same time, the WHO is working with our member-states to build a strong architecture for health emergency preparedness and response, with a new pandemic accord and strengthen international health regulations, with enhanced financing through the newly established financial intermediary fund, with enhanced systems and tools for surveillance, preparedness and equitable access to tools, including a truly multilateral supply chain, clearing house and with a strengthened and sustainable finance, with WHO playing a central coordinating role.

“Together, we must end the pandemic by vaccinating all those most at risk, and together, we must build a safer world, and we must do it now.”

The NPHCDA latest report stated: “COVID-19 Vaccination Update: September 25th 2022, in 36 States plus the FCT. 38,765,510 of total eligible persons targeted for COVID-19 vaccination, fully vaccinated while 12,040,065 of total eligible persons targeted for COVID-19 vaccination, partially vaccinated.”

 

 

The power sector is at a crossroad, with operators not doing their respective beats as expected. However, what is actually required for the Nigerian Electricity Supply Industry to meet the country’s demand is a review of ruinous contracts that hold it from evacuating its own cheaper and stranded 3,000Mw in the National Integrated Power Project Plants. JOHN OFIKHENUA reports

Last week, as at 10 am on 21st September, 22 power plants generated 4,087.40Mw. The Independent System Operator (SO) of the Transmission Company of Nigeria (TCN) allocated 3,438.00Mw to the 11 electricity Distribution Companies (DisCos) at 10:45pm same day. The raining season is mostly accountable to the relative harvest of higher quantity of energy owing largely to the raining season that is boosting production from the hydro plants.

Although the production is still a far cry from the over 7,000Mw generation capacity and the over 12,000Mw demand, it is a signal to what the electricity market should be. For now, some residential customers get up to 18 to 20 hours supply daily. The commercial outfits are yet to feel the impact of any significant improvement. It is neither substantial nor reliable. Yet, it is better off than the downtime of January to April.

Certainly, as no season is constant, the rains would soon bid farewell, a time that drains the dams and shrinks their contributions to the national grid. Besides, the gas market is hardly stable as it also has the human and other industrial factors to contend with. The intrigue that has characterised the country’s electricity market is its deliberate ruinous undertakings that place it at the mercy of the gas producers and energy generating firms is the Federal Government’s refusal to look inward. A critical analysis of the electricity market, structure and application of own solution can place it on a better footing come next dry season, if the energy distributors are truly set for serious and legitimate business.

The solution lies in the Niger Delta Power Holding Company (NDPHC) that is of the three tiers of government. It has the capacity to sustain the market, but its plants are at the mercy of the National Control Centre (NCC) Osogbo of the TCN. The structure and operation of the Nigerian Electricity Supply Industry (NESI) bring to mind the question of whether its managers truly want the country to grow. With the shield of Power Purchase Agreements (PPAs), self-seeking private entities have arm-twisted the government to tilting the market operation solely in favour of the Independent Power Producers that must recoup their investments.

The arrangement has thus edged out the National Integrated Power Plants (NIPPs) that of under the Niger Delta Power Holding Company (NDPHC) or made them the last resort. Today, the company’s interventions cut across the entire value chain, making it Nigeria’s power industry backbone. At the moment, the government owned firm that has different power plants is owed about N150billion by the system. There is an anomaly that the company’s power is the cheapest per kilowatt among thermal producers. Also, its hydro power is the cheapest; yet the System Operator prefers the independent power producers simply because of their PPAs. This is the reason that despite this low price, NCC still gives the government-owned company least priority when buying power and it is the first to be asked to disengage.

Asked why the company was unable to supply its capacity to the grid, the Executive Director, Engr. Ifeoluwa Oyedele, on July 20 this year, told reporters at the International Power Engineering Exhibition & Conference, which held in Abuja, that the National Control Centre (NCC) in Osogbo prefers using energy generated by private companies because of their Power Purchase Agreements. He noted that it is when the private firms, which are having binding agreements cannot produce that the NCC resort to NDPHC plants. According to him, since the NDPHC plants are government owned, the Federal Government uses them to subsidise. He was asked why the NCC was leaving the 3,000mw stranded to send out power first from the private plants, he said: “The government has signed a power purchase agreements with those private enterprises. And they (government) wants them to recoup their money. Because the NDPHC plants are government owned, the Federal Government uses them to subsidise.”

The NDPHC is responsible for provision of at least 50 per cent of transmission and distribution infrastructure in the country. It is unbelievable that many years after, neither TCN nor any of the DisCos has paid for the facilities already handed over to them from which they are generating income. Despite its strategic importance, unlike its peers, there is no single ‘Take or Pay’ contract like government has with some other generation companies.

According to the Azura-Edo Power Plant Managing Director, Mr. Edu Okeke, who spoke with reporters in the plant in Ahor, Benin-City, Edo State, ‘take or pay’ is necessary because constant gas is required for electricity generation. He also explained that it is not limited to only volume of gas used but the capacity of the power plants. Okeke further revealed that besides Azura-Edo, four other companies have the ‘take or pay’ to boot. They, according to him, are Omotosho, Afam, Olorunsogo and Okpai. He said: “Then we come to the other point that everybody is talking about: The Take or pay.  There is take or pay. What does take or pay mean? For us to generate electricity we have to have constant gas. Now for you to make sure you have gas, there is take or pay. That is how it is structured in every project of this nature.

“Normally, that take or pay is not the quantity of gas you use. It is likely below it. And if you are generating power, that take or pay is immaterial because you are using it. Now, Azura is not the only company that has take or pay. Every plant in Nigeria that has effective PPA has take or pay. Afam, Okpai, Omotosho, Olorunsogo – they all have it. The oil companies don’t actually call it take or pay. This is because the oil companies own the plants and also supply the gas.”

NDPHC is not also paid a dime to compensate for its spinning reserve to compensate for gas and other expenses going into maintaining its turbines when power is not being taken. Despite all these, the company has continued to run efficiently without once returning to treasury for bailout since the initial seed capital was provided.

Read Also: Nigeria Energy Transition Plan should not be politicised – APWEN

Shedding light on the different conditions under which the company operates, the Managing Director of NDPHC, Mr. Chiedu Ugbo, opened up that its generation assets works with a tariff that is 28 per cent lesser than that of its peers. His words: “I am managing generation assets: I have tariff that is 28 per cent lower than my peers, meaning that I am subsidising the sector by 28 per cent. We have met the regulator a number of times on this to say that government has to take a decision on whether we are a social company or a business entity because if they increase our tariff, it will lead to overall increase in revenue judging by the capacity of 4,000MW that we have.”

On stranded capacity, he stressed that although the company has a record of over 3,500Mw capacity, it is only allowed to supply 700Mw. The CEO said: “Again I have over 3,500 MW capacity but I am told to supply only 700MW and it is on that that I get paid. Now, DisCos remit about 50 per cent. It means that I get paid 50 per cent. Right now, what is owed to NDPHC by the industry is somewhere around N150 billion. Which company survives with that level of debt?”

He however, gave assurance that the problems with the electricity sector would soon be resolved with the various interventions. He explained that, “NDPHC was providing interventions in transmission across the country aside from NDPHC is playing a big role in improving the transmission capacity of transmission company. President Muhammadu Buhari earlier this year commissioned the Lafia Transmission Substation. In 2021, we commissioned a 2×60 megawatts in Awka recently that will improve transmission capacity by about 100 MW. We did a similar project in Abeokuta and Akwa Ibom State.”

For the attainment of a stable electricity market, the President, Nigeria Consumer Protection Network, Barrister Kunle Olubiyo, has sought a uniform policy for all players in the NESI. He said since the ‘take or pay’ contracts would soon elapse, with the exit from the Transition Electricity Market, the Federal Government should halt the renewal of the retrogressive undertakings. According to him, the government is now turning down power operators request for partial risk guarantee. The advocate said, “Government is not paying Niger Delta Power Holding Company and the Federal Government is even buying electricity from them at a lesser price compared to other power generation plants. But what Federal Government is trying to do basically is to novate the existing ones. The existing ones have a timeline. They are not designed to be permanent. The existing ones that they have vesting contracts with, the vesting contracts will soon expire. So, we are not praying that those ones that have vesting contracts with the government be renewed.

“Let everybody sell power at the commercial market value. It should be market determined whether Niger Delta or others. There should be a uniform benchmark for pricing. Government is buying from Niger Delta below the amount they are buying from other thermal power stations. Government is also having take or pay’, whether it is used or not. It is not designed to be permanent. It is just for the period of transition electricity market. It is transitory in nature. If the market develops, it can take care of itself. When it is market driven, it will reduce the liabilities of government. Even new investors that now want to generate power, they are asking for partial risk guarantee and government is not giving them.”

However, it is worthy of note to reveal that the controversial ‘take or pay’ contract would be uncalled for were the TCN living up to its name. This has become apparent from the Azura-Edo Power Plant CEO revelations. He dropped the hint that in a situation where the power produced is fully evacuated to the electricity Distribution Companies (DisCos) and the energy distributors leave their feeders the issue of stranded energy would not arise. Thus, load allocation and distribution play a pivotal role in the electricity market, which makes it a mandatory clamour for an end to the shoddy performance from the distribution points.

Already, owing to the weak state of the TCN national grid which always culminates in unstable frequency, the $900 million Azura-Edo 461Mw power plant does not at times generate the 452Mw it signed in its contract to produce.  The House Committee on Finance recently summoned the firm over inability to produce the capacity of its agreement. But speaking with reporters, Okeke insisted that the plant has its 452Mw capacity available at all time. He said, “I have my 452 megawatts capacity available at all times to be used by the grid…But if I do it, you will lose the grid because what it means is that is..then TCN will lose the grid.”

The Nigerian Electricity Bulk Trading Company and even the TCN come to the plant regularly for capacity test, he said. According to him, there is supposed to be a balance between the load input and output to have a balanced frequency of 50Hz. But the Managing Director noted that this is hardly the case because some DisCos switch off their feeders unannounced and the turbines equally drop the same quantity of energy immediately.

Analysing the functionality of the plant from the control center, he said frequency reacts to load. “Let’s assume that it was balanced at 4000Mw. But you can’t just take out take out one feeder. You will now supply 4000Mw But the load has now gone down from 4000Mw an hour, immediately the frequency that will react because the load is now low the frequency will drop immediately. What will happen now is that the turbine will automatically get it and slow down.”

There is no doubt that the power sector is at a crossroad and the Nigerian Electricity Regulatory Commission must prevail on the operators to do their respective beats. Since the power sector can be better off under a uniform market benchmark, the Federal Government needs to provide a level playing ground for all its operators. Besides, its grid collapse has become a national embarrassment, it is incumbent on the government to expand and technically strengthen the network for optimal performance.

Realising that it is only security agents that enjoy some measure of financial stability at the home front that can be motivated to do their job properly and secure lives and property, the Lagos State Ministry of Women Affairs and Poverty Alleviation (WAPA) has taken its skills acquisition empowerment programme to the barracks to make the wives of police and army officers self-reliant. OYEBOLA OWOLABI reports

Wives of police and army officers, about 500 of them, were among beneficiaries of the quarterly four-week short-term skills acquisition empowerment programme organised by the Lagos State Ministry of Women Affairs and Poverty Alleviation (WAPA). The training and graduation ceremony for soldiers’ wives held at the Ikeja Cantonment; while that of the police officers’ wives held at the POWA Hall on Oduduwa Street, Ikeja. The training was done in collaboration with the Police Community Relations Committee (PCRC).

Beneficiaries were trained in tie and dye, catering, fabric stoning and embellishment, hair and wig making, make-up and gele tying, as well as production of household products such as organic soap, stain remover, air freshener, and others. The Commissioner for Women Affairs and Poverty Alleviation, Mrs. Cecelia Dada, said the gesture was to reiterate the fact that the state government is interested in the welfare of all residents, irrespective of tribe, religion or political inclination.

According to her, Governor Babajide Sanwo-Olu has mandated the Ministry to ensure women get the best so they can also become contributors to the society’s socio-economic growth. She said: “We decided to empower the wives of police officers because this government is not biased. We have trained the wives of Army, Navy and Air Force officials before now. Wives of police officers are not left out because they are also women in Lagos State, and because our government is not a biased one; it is not just for politicians, but for all.

“An empowered woman is self-reliant; she is able to take care of her family; she is able to stand on her own; and she is able to fight for her rights. These women will be able to cater for their children, family, and they will improve the economic situation of the state as a whole.”

The Lagos Commissioner of Police, Abiodun Alabi, who was represented by Assistant Commissioner of Police (Administration) Mary Ayim, thanked the state government for the gesture. She described it as a ‘laudable one which will help to improve security architecture, since officers will be able to focus more on their work knowing their wives can take care of the home.’ She said: “The command is grateful to the WAPA for this support. This shows that the Lagos State government is interested in ensuring all-round comfort for the police community. The government is a father to all, and I can say it is not partial at all.

“This will, in no small ways, improve the morale of officers in performing their duties. The Commissioner of Police is also urging the women not to let the training die. You have gotten the training, and the government has gone as far as empowering you with some starter packs; don’t let it die with you, but go and build on the skills so you can help your husbands. You have been given tools and now your destiny is in your hands. You have been given a tool to dig; so I want you to dig forward and get the gold that is ahead of you.

“This training is not just to empower the women, but also to secure the future of their children. You have also helped their husbands because they will perform their duties better knowing they have support at home. On behalf of the Commissioner of Police, I say thank you for this, and I assure you that the women will run with this and be better wives. It is also said that to which much is given, much is expected. So if they have given us all these, we should give back by ensuring that Lagos is safe, and we will do our best.”

The wife of the Police Commissioner, Mrs. Oluwatosin Alabi, also thanked the government for the programme. She particularly admonished the women to run with the idea to make life worth living for themselves and their families. “I want to talk to my women this morning; you’ve come, you’ve learned and you’ve conquered. Please, make use of this and take it as something very important. Whatever you are given today, please make sure you make use of it because it’s for your own benefit. Like I’ve always told you, when opportunities like this come, please grab them and make good use of it, especially to help yourselves and your husband. God help us all,” she said.

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The women coordinator of PCRC, Mrs. Helen Animashaun, who facilitated the training, said she was dissatisfied with the state of most of the women, especially the widows. So she approached the WAPA Ministry to help. She added: “I didn’t like that most of these women were idle. So I wrote to the Ministry and they responded well. Today, I am happy that the government has helped women who were once idle.”

 

The elated beneficiaries were also full of praises for the government, and promised to make good use of everything they have learnt. A member of PCRC, Mrs. Comfort Lawal, said: “I didn’t know the government was doing something of this nature, talk more to this extent. I salute Governor Sanwo-Olu for coming to the people’s aid in times like this. I was in the household product class and I have learnt to make 23 different household products. Though we came to coordinate the police wives, but I have gained more than enough.”

Mrs. Eunice Adikwu, who learnt hair and wig making, described the training as ‘amazing and one which will lift women out of poverty.’ “I was sitting at home and taking care of my kids, but with this training, I will support my family. Even before I graduated, I’ve made wigs and sold to my people,” she said.

The training was also taken to the Omajuwa Community in Agboyi-Ketu Local Council Development Area of the state, where members of the Catholic Women Organisation (CWO) of the Catholic Church of the Resurrection, Magodo Estate, Shangisha, and some others, were beneficiaries. 250 women were trained in the centre. Mrs. Dada said the gesture was because the government is intent and deliberate about touching the life of every woman living in the state.

“Seeing the joy of women the government empowers, especially when you give them a source of livelihood, gives me joy. The government is not biased; we try as much as we can to touch every woman who lives in Lagos, irrespective of ethnic, religious or, political affiliation. If you need any of our interventions, we make sure we bring it to wherever you are. We have done so much as a ministry, but it’s still not enough. There are still lots of women out there; so my admonition to women in Lagos State who are yet to take this opportunity is for them to know that the train is moving. The earlier they jump on it, the better for them,” she said.

The parish administrator, Fr. Paul Bastus, thanked the government for the gesture, and admonished the women to repay the goodwill by not just helping themselves, but others as well. He specifically begged them not to sell the starter packs given to them, but become great ambassadors of the state by working to show themselves approved.

The President of CWO, Tonia Ozoede, who described the initiative as ‘a wonderful gesture’, said: “I am overjoyed simply because we have had this dream of empowering our women but financial constraints have been holding us back. But when this opportunity came, we jumped at it and we are better for it.

Lagos State has also gone a step ahead to give them working tools so they don’t have to struggle with starting after the training. I thank the government so much for this initiative and I am also appealing to them to do more by ensuring that it goes round.

“I am also promising to follow the beneficiaries, chase them to ensure they do well by what they gave been given, especially those who are within my reach. They must get it done, because Lagos said zero tolerance to idleness; so they have to work.”

For three days, 21 female journalists were trained in digital skills that can help them self-develop, check fake news, and produce meaningful contents capable of driving social change in this age of misinformation and disinformation. OYEBOLA OWOLABI, who attended the training, reports

The three-day training was particularly instructive to empower female journalists with digital skills to fact-check information to forestall the endemic misinformation and disinformation that has polluted the media space. It was organised by Kofoworola Belo-Osagie, a journalist until about five months ago, as an impact project following her 2020 training on ‘Media Responsibility in an Age of Disinformation,’ with the International Visitors Leadership Program (IVLP) Edward Murrow Program for Journalists.

Participants were nominated by the National Association of Women Journalists (NAWOJ), various media houses, Education Writers’ Association of Nigeria (EWAN), and Women in Successful Careers (WISCAR), among others. The training focused on social media journalism, podcasting, writing a fact-check report, video production and editing, among others, as well as pet talks on transforming journalism careers.

Ms. Belo-Osagie, who is now with The Conversation Africa, a research-based agency, said her time at the IVLP exposed her to the challenges of disinformation, and so she saw the need for journalists to be equipped with relevant skills to check fake news. She said: “I am privileged to have such an opportunity to organise this training. When I started journalism 17 years ago, it was sufficient to only know how to write and report. Computer skills were just becoming a thing, and I was a star for just knowing how to type without looking at my keyboard.

“Today, journalism practice has evolved, and it is no longer enough to just know how to write. Journalists now need digital skills. Non-professionals beat us to it, resulting in the rise of influencers not trained in journalism ethics doing a lot of damage in the information space.

“This IVLP impact award training, therefore, provides an opportunity to share this knowledge on a practical level with practising female journalists whose roles include news and investigative reporting, producing programmes for radio, television, and reaching online audiences across various platforms. A limited number of participants were taken to ensure adequate support and ample benefit from the hands-on training.”

According to her, the choice of women as beneficiaries of the training was informed by the perceived discrimination female journalists’ face in the newsroom. She said: “The training aims to help 20 female journalists in various career stages bridge the digital divide and gain fact-checking skills to check misinformation and disinformation. The choice of women as beneficiaries of the training is informed by the discrimination that women journalists face in the newsroom. In many media houses in Nigeria, few women occupy positions in senior management.

“By gaining specialised skills that help bridge the digital gap, these women will expand the army of professionals in the media/news/information space. They will also better fight fake news and produce much needed quality content that support societal development,” she said.

 

Counsel

On her part, Executive Director of the Wole Soyinka Centre for Investigative Journalism, (WSCIJ), Motunrayo Alaka, urged the participants to be responsible by taking up leadership roles wherever they find themselves. She admonished women to intentionally take up space wherever they find themselves. The WSCIJ boss told the participants that the WSCIJ has a lot of grants and opportunities they can benefit from if only they can apply.

“Women need to be seen and heard, and now is the time to do that. Influencers and bloggers with no professional training have populated the media space with mismanaged information. So, it is time for professional journalists, especially women, to get equipped with the right tools so they can participate. Women should be intentional about taking up space wherever they find themselves; not overbearing or unmindful of others, but making sure they take leadership roles,” she said.

Also speaking, founder of Women in Technology (W-Tec), Mrs. Oreoluwa Lesi, encouraged participants to key into the many opportunities available for women in information technology. She hailed Ms Belo-Osagie for putting the training together and urged participants to take what they have learnt to other women in their various places of work.

 

The training/facilitators

The training itself covered a wide range of digital skills applicable in modern journalism, and facilitators did an excellent job of living up their calling. Kenneth Kiunga of Google News Initiative took participants through an array of Google tools that make work easier for journalists, as well as fact-checking tools, images and websites.

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While Titilope Fadare of Premium Times trained the participants on Mobile Journalism and how to produce videos for news reporting, Audience Manager of The Conversation Africa, Mr. Usifo Omozokpea, gave an extensive training in Digital Skills for Media Excellence, with particular focus on social media journalism, podcasting, one-minute videos. He also gave hints and tools for easy transcribing and info-graphics for print journalists, while not leaving out tips on producing engaging one-minute videos.

The duo of Ayomide Omoniyi and Tarabina Lesley of W-Tec took their time to teach participants the essence and trick of producing and edit graphics and videos, using mobile applications on the phone; while Oluseyi Awojulugbe of Africa Check trained the participants on how to fact check and write a report. Justina Asishana of The Nation also took participants through her career journey as a way to encourage and motive them on being the best in the career they chose.

 

Take-home message

It was not only the facilitators who had the responsibility of teaching; participants also shared tips on skills and information, which help them work smarter and get better outcomes. This was tagged ‘Each One Teach One’. They also shared their take homes from the training.

Merit Ibe from the Sun newspapers said: “I have been in this profession in the last 20 years, but this training by Kofoworola Belo-Osagie has exposed me to new skills and ideas in journalism. Thank you IVLP, and thank you Kofoworola.”

Ekaette Bassey from The Nation said: “I am so happy to have been a part of this training. This training is very special and a good start for my career having just joined the journalism field and I am given this opportunity to learn. I remember doing a story which almost got my organisation into trouble because the information was gotten from a parody twitter account. So this training means a lot to me because now I know I have to fact check myself before going to press.”

Abiodun Azi from the News Agency of Nigeria (NAN) said: “I thank IVLP and Ms. Belo-Osagie for this great opportunity. I came not expecting much but the three-day training surpassed my expectations; it was loaded and I am grateful.”

Oyebola Owolabi of The Nation said: “This training has opened my eyes to new and more effective ways of practising journalism. This training is a testament to the fact that journalism as a profession keeps evolving every day, and professionals have to keep themselves abreast of new developments to remain relevant. Thank you to IVLP and Ms. Belo-Osagie for this timely and functional training.”

The Lagos State abortion policy seeks to achieve safe termination of pregnancy within the ambits of the law. However, like many new policies, the initiative is mired in controversies, with opposition to it coming from many sides, including the Catholic Church. In this report, CHINYERE OKOROAFOR examines the issues

On 28 June 2022, the Lagos State Government unveiled a 40-page policy document on safe termination of pregnancy. It was designed to reduce “preventable deaths” usually caused by unsafe abortion procedures. The policy is meant to guide medical practitioners and other stakeholders on when it is lawful or unlawful to terminate a pregnancy.

It also outlined the medical conditions that legally qualify for abortion and prescribes the procedures that medical facilities and health workers must follow to achieve safe and therapeutic termination within the ambit of the state Criminal Law. The policy restricts abortion to only endangered mothers, critically disabled foetuses and victims of rape. It also listed obstetric and gynaecological disorders, heart and vascular diseases, kidney damage, cancers, blood diseases, and psychiatric and mental disorders, among others, as some of the conditions that can constitute a threat to the life and physical health of a mother.

Before termination, the guidelines recommend a string of procedures, including confirmation of pregnancy, physical examination, laboratory investigation, informed consent, and patient evaluation. Titled “Lagos State Guidelines on Safe Termination of Pregnancy for Legal Indications,” the policy’s goal, according to the state government, will help to reduce maternal morbidity and mortality that comes from unsafe termination in Lagos and, by extension, Nigeria.

According to the Permanent Secretary, Lagos State Ministry of Health, Dr Olusegun Ogboye, during the launch at a stakeholders’ engagement, said the policy was borne out of the need to provide evidence-based data and information for health workers in the public and private sectors with the necessary training to provide safe abortions. Citing the abortion law, Ogboye said that while therapeutic termination of pregnancy was permitted, the absence of clear guidelines has hindered the effective implementation at appropriate levels of care, resulting in avoidable deaths

“In 2011, the Lagos State House of Assembly updated the criminal code, providing for abortion to save the life and protect the physical health of the woman. This document provides information on relevant laws applicable in Lagos State while providing standards and best practices regarding legal indications, pre and post-procedure care, methods, and monitoring. I must state here that this document has undergone wide consultation with relevant technical stakeholders within the state’s legal and health service context.”

 

The policy development

Ogboye explained that the development of the guidelines commenced in 2018 with the Safe Engage project led by the ministry and hosted by the Society for Obstetricians and Gynaecologists of Nigeria (SOGON), with support from the Population Reference Bureau (PRB). The Safe Engage project, tagged “Out of the Shadows: Saving Women’s Lives From Unsafe Abortion in Lagos State,’ focused on two outcomes, including ensuring that safe abortion services were available within legal limits and domesticating the Violence Against Persons Prohibition Act, supporting women to terminate a pregnancy caused by rape or incest.

But not every stakeholder shares the sentiments above. One of such people is the Nigeria director of Marie Stopes International Organization Nigeria (MSION), a reproductive health organisation, Emmanuel Ajah. According to Ajah, some healthcare providers are unaware of the legal indications for safe termination of pregnancy even though they have the responsibility to determine when a woman’s life is in danger. He explained that “Healthcare providers need to have the right understanding and make those critical decisions based on sound medical judgment and not on religion, culture, or other biases,” he said.

 

Reality of unsafe abortion

Sharing her unsafe abortion experience, Idu Odili, who seeks anonymity, said she was 15 years old when she got pregnant by a boyfriend who raped her. She did not understand the throbbing pain in her nipple until she started to feel feverish and vomited in the middle of a meal; she sought her friend’s advice.

Odili was still in the secondary school when the pregnancy test tube her friend had suggested showed two red lines, indicating positive. “I was devastated; I thought about my father and how disappointed he would feel. I would become a laughing stock in my community,” she explained, straining her voice as she mined her memory for details.

At first, she drank a concoction made of local spices soaked in gin. Her friend assured her it would flush out the foetus. She eventually sought medical help when her period still failed to come. “A week passed, and I didn’t see anything. I continued to vomit, and my breast was increasing,” she said.

Not wanting to be found out, Odili persuaded her friend to help her seek medical procedures outside her home in Iba Local Council Development Area (LCDA) in Lagos. Asked about how the concoction made her feel, Odili said it only made her purge a few times. Her friend had taken her to a building in Ikotun to see a doctor who ran a private, unregistered clinic. She was scared.

Inside, a three-room apartment was used as an improvised clinic. The girls met other women in the waiting room; they were also there to see the male doctor who ran the place with three female nurses. One nurse briefly conferred with the doctor before Odili was called into the room they used as a theatre. The surgical abortion cost her N5,000 in 2005. Inside the surgical theatre, a wooden cabinet was mounted above a black leather-wheeled stretcher positioned sideways, and nearby stood a trolley with metal pans.

The procedure was over just 40 minutes after Odili walked into the room. “I was just whisked into a room …” she recalled, exasperated. “I was not given any pre-abortion treatment or any post-abortion treatment. We began immediately. There was a thing that looked like a giant injection, like a big syringe. Attaching a big metal object to it, the doctor started sucking, and I felt a terrible pain I had never experienced. At one point, I had to tell him to please pull it out of me. Please, please, I told him. I was writhing in pain, but at the same time, I could not move because I did not want to harm myself by shaking.”

When the procedure was finished, a nurse helped Odili into the recovery room; minutes later, she was told to vacate the space because another patient needed it. In many cities and villages across Nigeria, induced and stigmatised pregnancy terminations are common. Many of these abortions, like Odili’s, are unsafe and carried out secretly due to Nigeria’s anti-abortion laws.

 

Abortion statistics in Nigeria

According to the World Health Organisation (WHO), unsafe abortion is a leading but preventable cause of maternal deaths and morbid unsafe. It can lead to physical and mental health complications and social and financial burdens for women, communities and health systems.

Data from WHO shows that globally, 4.7 per cent to 13.2 per cent of annual maternal deaths can be attributed to unsafe abortion. Every year, an estimated 287,000 maternal deaths occur globally of which Nigeria contributes 14 per cent. Unsafe abortion accounts for about 10 to 14 per cent of maternal morbidity and mortality in Nigeria, which is among the highest in the world.4

Experts have blamed restrictive abortion laws, prohibitive costs, poor access to safe health services, and intense social stigma as barriers that cause unnecessary deaths of women seeking health care in the shadows. When performed safely, abortion is an uncomplicated procedure.

 

Safe abortion policy divides opinions

The Catholic Archbishop of Lagos, Most Rev. Alfred Martins, rejected the new abortion guidelines. He described the release as legalising abortion through the backdoor. Martins is worried that the Guidelines will create room for indiscriminate procurement of abortion. He described the government’s claim that it consulted all stakeholders in the guidelines’ preparation process as untrue.

“The issue of abortion touches very much on ethical and religious sensibilities, and religious bodies were not consulted. Certainly, millions of Catholics, who have always maintained their strong opposition to the legalisation of abortion in any guise, were not consulted.

“The baby in the womb is a person that is distinct from the mother, though he is in the mother’s womb; so, not even the mother has the right to kill him, talk less of the government purporting to give legal backing for their murder. We need to continue to explore ways of providing support for women who find themselves in difficulty as a result of their pregnancies rather than thinking of aborting a child who is innocent of the difficulty that the mother may be going through. Any attempt to terminate the life of an unborn child is tantamount to murder and should be treated as a capital offence,” Martins argues.

The cleric advised that the focus should be on proper enlightenment on human sexuality and collaboration to support women who get pregnant without being ready for the pregnancy.

 

Then came the suspension of the policy

In reaction to the condemnation of the guidelines, Governor Babajide Sanwo-Olu, on July 7, directed the suspension of the implementation of the guidelines. In a statement released by the Commissioner for Health, Prof. Akin Abayomi, the governor directed further sensitisation of key stakeholders and members of the public to ensure a clearer understanding of the objectives of the guidelines.

According to him, the state ministry of health is seeking different methods to eliminate illegal abortions and ensure that a mother does not die at childbirth and disrupt an entire family unit. The governor is worried that illegal abortions and high-risk pregnancies leading to unresolvable complications rank high among contributors to maternal mortality. Sanwo-Olu said suspension of the implementation of the Guidelines will enable the state executive council to deliberate on the matter and ensure adequate public sensitisation and stakeholder engagement to reach a consensus required for successful guideline development.

Analysts urge expedited deliberations, sensitisation and engagement of stakeholders to ensure timely resolution of any issues around the guidelines and take desired actions that will save the lives of more pregnant women.

 

Calls for the lifting of the suspension

Supporting the guidelines, the Women Advocates Research and Documentation Centre (WARDC), a women’s group, staged a protest against the delay in lifting the suspension on safe termination of pregnancy in the state. During the protest, no fewer than 150 women groups across various rights and civil society organisations marched to the Lagos State House of Assembly in Ikeja to make their grievances known to the state.

Giving the reason for the protest, WARDC Executive Director, Dr Abiola Akiyode-Afolabi said the Sanwo-Olu-led government supposedly failed to promptly lift the suspension as requested by the women in a petition sent to him, demanding the lifting of the suspension.

Akiyode-Afolabi, who led the protest, called on the governor not to play politics with the lives of women, claimed that unsafe termination of pregnancy accounts for the second leading cause of maternal deaths in Nigeria. She explained that the guidelines placed on suspension are a timely intervention for reducing preventable deaths and protecting women’s reproductive rights, adding that the government was misadvised to suspend the regulation.

The women believe that continued delay in lifting the guidelines will encourage unsafe abortion in the state, adding that refusal to lift the suspension may lead to a situation that will do grave harm to women’s health.

The African Continental Free Trade Agreement (AfCFTA) provides $504.17 billion African goods and $162 billion services opportunities to banks and other companies within the continent. With investments in technology, Access Bank has fortified its operations to support businesses and integrate payments for participants in the AfCFTA. Access Corporation’s Chief Executive Officer, Herbert Wigwe, says the conglomerate’s transition into a full financial services holding company and wide network coverage will be harnessed to drive Africa’s payment options for sustainable economic growth. Assistant Business Editor COLLINS NWEZE reports

Discussions around African Continental Free Trade Agreement (AfCFTA) are getting louder by the day. From Lagos, Nairobi, Accra, Freetown to Cape Town, and other cities across the continent, there is huge awareness about the $3 trillion trade opportunities in AfCFTA and how they will impact African economies.

For many financial institutions, AfCFTA represents hope for Africa, and the long-awaited opportunity to connect every African in the businesses world through digital payment. The AfCFTA is the largest trade pact to take effect since the establishment of the World Trade Organisation, covering more than a billion people across the African continent.

Access Bank is one of the banks that saw early the e-payment opportunities in AfCFTA and has not only expanded its operations to harness them through investments in technology, but has expanded its footprints in Africa and other critical regions globally. For Access Holdings Plc, trading as Access Corporation and led by Herbert Wigwe, technology is redefining and simplifying banking.

It has also brought banking to the doorsteps of almost every household. For instance, the opening and operating of accounts can now be done without visiting a bank or physically interacting with human beings and from the comfort of one’s office, bedroom or even while in transit.

Technology has revolutionised banking and every individual now has the capacity to have their banks with them everywhere and in their pockets. These are the benefits the financial institution is tapping with its massive investment in technology. Wigwe has also deployed impeccable professionalism, discipline and persistence in leading the change in the traditional narrative of the banking sector in Nigeria and the continent. From deep understanding of compliance issues and the need to use the right technology infrastructure to support payments and remittances without taking incremental risks, Wigwe has taken the banking giant to the next level.

He said: “The bank will go forward, focus on becoming an aggregator in Africa as we build a global payment gateway, provide trade finance support, and correspondent banking across Africa’s key markets. We are diversifying our earnings away from volatile markets and orchestrating operations from the global payments gateway.”

Wigwe had said across Africa, there were opportunities for the bank to expand to high-potential markets, leveraging the benefits of the AfCFTA. He had said AfCFTA, among other benefits, would expand intra-Africa trade and provide real opportunities for Africa.

Wigwe is not the only one voicing support for AfCFTA. Speaking at the African Continental Free Trade Agreement (AfCFTA) conference in Dar Es Salaam, the United Republic of Tanzania, Liberian Vice President, Jewel Howard-Taylor, emphasised the compelling need for a hands-on approach and collaboration necessary to ensure the actualisation and subsequent transformation of the lives of the largest segment of Africa’s population, the women and youth. She further argued that besides trade, the success of AfCFTA will also be assessed on its impact on how it improved the development trajectory of the African continent through improved access to credit.

 

Exploring AfCFTA advantage

 

A crucial arena the Access HoldCo seems very focused in its quest for offering of trade facilitation services to its African business community is the use of an efficient payment and settlement design being developed to power transactions in the AfCFTA, which commenced with about 52 countries already aboard.

The emerging consensus is that Africa still trails Europe, Asia and the United States, among other regions, in its continental trade below 10 per cent of global trade. For example, over the past 50 years, records show that while trade with the West comes with very few or zero bottlenecks, intra-African trade are usually mitigated by so much tariff and non-tariff barriers, including payment challenges, which an Access HoldCo can leverage to extend its reach across Africa and beyond in the years ahead.

According to the African Development Bank (AfDB), intra-Africa exports amount to only 16.6 per cent of total trade in the continent. But the signing of the landmark trade agreement in the African Continental Free Trade Area Agreement (AfCFTA) in 2018, which commits countries to remove tariffs on 90 per cent of goods, progressively liberalise trade in services and address a host of other non-tariff barriers, opened a new vista for Nigerian and other lenders in Africa to become more competitive.

Though much work still needs to be done, the agreement created a single African market of over a billion consumers with a total Gross Domestic Product (GDP) of over $3 trillion, which would make Africa the largest free trade area in the world. Fundamentally, this means that any lender with relevant structures can leverage payment and settlement opportunities in the continental space to make more impact.

The need to formalise Africa’s trade opportunities led to the implementation of the AfCFTA, which also comes with opportunities. The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said the AfCFTA, when fully implemented, could afford Nigerian companies preferential access to African markets worth $504.17 billion in goods.

Over the last few years, Access Bank has been on an aggressive expansion journey. From expanding its footprints nationally, the Nigerian bank has been strategically planting branches across Africa and establishing presence in countries thousands of miles from its headquarters, to take advantage of the widening opportunities on the continent. One of such ventures by Access Bank was its announcement on the Nigerian Exchange Limited (NGX) that it had acquired 78.15 per cent shareholding in African Banking Corporation of Botswana Limited (BancABC Botswana).

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Access Bank has subsidiaries across Sub-Saharan Africa and Europe, providing financial and banking services. They include Access Bank (Gambia) Limited, Access Bank (Sierra Leone) Limited, Access Bank (Zambia) Limited, Access Bank (UK) Limited, Access Bank (Ghana) Limited, Access Bank (D.R. Congo), Access Bank (Rwanda) Limited, Access Bank (Guinea) Limited, Access Bank (Kenya) Limited and Access Bank (Mozambique) Limited.

 

Next decades of leadership

 

After over 20 years in operation, and now a HoldCo, analysts said the next 20 years under Wigwe’s leadership will be very exciting for Access Bank. They see the bank landing in New York, Paris and many other places in the Northern Hemisphere and urged it to continue to support the underprivileged members of the society in its corporate social responsibility programmes and the aspirations of the government in making African economy more diversified and productive.

Speaking on the Corporation’s debut, an upbeat Wigwe, who is the Group Chief Executive Officer of Access Corporation, said: “Many of you would have heard us talk about Access Corporation earlier this year. This natural evolution of our company will ensure that we continue to use digital tools and our partnership with Fintechs to support our customers’ lifestyles outside of the banking system.

“We have set our sights on and delivered ambitious plans to transform the African financial services sector over the last 20 years. Until now, we have concentrated on banking, with the goal of becoming the World’s Most Respected African Bank.

“Our banking subsidiary is Nigeria’s largest bank by assets and Africa’s largest in terms of customer base. It is now time for us to take the next transformative step, where we provide our customers with beyond banking services delivering new interconnected financial services across customers’ needs.”

For the lending company, the focus is largely on consumer lending, serving individuals and small and medium scale enterprises. Products on offer include buy-now-pay-later loans, car loans, small mortgages, salary-based loans, working capital loans, durable goods loans, point of sale loans and much more. This is a digital business, focused on speed, convenience and value. On the other hand, the Group’s Payment Company will drive payments locally and across the African continent and beyond. Primarily, a business services company, the Payco will make payments simpler, faster and more efficiently. The focus will be on switching, card processing, new and emerging payments.

There is more. An Access HoldCo structure, for the nimble Wigwe, means they now have the leeway to branch out into other financial services outside its core banking operations to recompense for a largely depressed earnings capacity of commercial banking in consonance with the sector’s growing propensity to diversify income streams of operators in an enlarged entity.

Effectively, the HoldCo franchise allows a parent company to hold controlling stakes in the subsidiaries under its purview without interference in their functioning, while freeing each of the companies in the group from the liability or debt settlement obligations of another company in the event of insolvency.

Perhaps not surprising Access Holdings’ exploited its Afrocentric leaning and opened up branches in major financial centres of the world to enable it focus more on improving trade on the continent and earn more revenue for its shareholders. An alert, sure-footed leader, Wigwe noted: “We recognise and embrace the change that is currently happening and, as we have previously demonstrated, we will lead. Access Corporation will be a driving force in the ongoing digital revolution to the benefit of our stakeholders.

“This transition will allow us to offer more career development opportunities across portfolio companies for our employees, allowing us to attract and retain the best talent in an increasingly global marketplace. We will unlock more value for our customers by focusing on distinct business opportunities with high growth rates globally, such as payments and consumer lending.”

 

Looking ahead

 

Access Corporation said it will continue to provide services in health, housing, digital, mobility content, mobility, core banking offerings, and other financial services such as insurance and wealth management. Wigwe said: “We recognise and embrace the change that is currently happening and, as we have previously demonstrated, we will lead. Access Corporation will be a driving force in the ongoing digital revolution to the benefit of our stakeholders. This transition will allow us to offer more career development opportunities across portfolio companies for our employees, allowing us to attract and retain the best talent in an increasingly global marketplace. We will unlock more value for our customers by focusing on distinct business opportunities with high growth rates globally, such as payments and consumer lending”.